E.U. Bashes New Restrictions On E.On/Endesa Deal

Law360, New York (November 29, 2006, 12:00 AM EST) -- The new conditions imposed by the Spanish government on the merger of energy companies E.On AG and Endesa SA “raise serious doubts as to their compatibility with EC law,” according to the European Union.

The European Commission claims that the conditions, mandated by CNE, Spain’s energy regulator, on Nov. 3, violate the E.U.’s laws governing the free movement of capital.

While Spain agreed to roll back several of the original conditions imposed on the merger, the government insisted that two remain. The conditions require E.On to...